From what I understand, a big part of what’s happening with Boeing, is that Boeing is run by Business person who want to maximize return of stock-owner rather than by people wanting to make a good product. The gained flexibility/nicer budget from massive sub-contracting led to “loss of knowledge”, and cutting-down quality control steps which “never catch anything” led to issue being missed-out.
Do you think that MBA program will take this reality into account ? or would they keep focusing on maximizing short-term profit even if it jeopardize the company’s future ?
I’m a recent MBA grad and I can attest that stuff like this was an important part of the curriculum re: sustainable growth. Cutting corners, focusing on short term profits is always a dead end. When leaders get lazy and don’t drive a culture that is aligned with the company’s mission, values, and obligations, decay is inevitable. The Boeing board of directors is as complicit in all of this as their executives are.
I don’t necessarily believe you have to have deep expertise in a given field to govern a business in said field. Often it’s even an advantage to come in with a fresh set of eyes. But you need to at least RESPECT that field and its experts and be forthright about taking responsibility when you take action intended to eliminate waste. If the only metric you are using is revenue, or operating profit, or whatever, you are creating an organization that is incentivized to maximize those at the expense of other, core-business-critical factors. If you’re making something inconsequential, by all means take those risks and race to the bottom. But when people’s lives are at stake, you need to have reverence for what your business actually does.
It’s a natural thing that occurs when your pay is based on stocks that respond heavily to quarterly results. Stay in for 2 - 3 years, drive stock prices up, get out, and leave the mess for the next leadership team.